How Can Balance Athletic Expenses? Essay

How Can Balance Athletic Expenses? Essay

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The economic well-being within the NJCAA easily explains its successful ways to balance athletic expenses in a way that does not affect the impact of the experience of the student-athlete. Finances within an organization help understand the sources of incomes and expense information. The NJCAA is an organization that takes part in a unique way of distributing/generating revenue which includes sourcing of income strategies and cost saving strategies. Hosting championship events is a way that the NJCAA allows its member institutions to gain revenue and exposure. Although this can be seen as a challenging endeavor for athletic programs and college administrators, the impact of the expenses/incomes highlight the many ways the institution can create balance. Over 78 years of operating under mandatory 8 employees for the “NJCAA which is estimated to generate $1.7 million in annual revenues, and employs approximately 8 people at this single location” (National Junior College Athletic Corporation, 2016).
Sources of Income:
The NJCAA has many different ways to generate revenue, which includes sponsorship packages/ partnerships, membership income, and tournament income. In the 2015-2016 budget the NJCAA had an estimated $900,000 from membership income, a sponsorship income of $255,357.00, and a tournament income which was $308,500.00 (NJCAA Budget, 1). Each source of income has a certain description that underlines each sources duty within the process. However, the NJCAA has many other ways of gaining revenue from “marketing income - AOL & Google ($35,000), NJCAA review - income ($8,975.00)” (NJCAA Budget, 1). When considering program attendance the total number of people at the games dictates the revenue being brought in during the games...

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...ng the 2010-11 and 2011-12 academic years to reduce travel costs” (Horton, 3). Despite taking a look into realigning of conferences, this can be seen as a benefit when lessening the travel distance which serves as a tool for cost reduction. The travel expense for the NJCAA is separated solely off of the person being provided travel expenses. The travel expenses will include Travel - Assistant Media ($2,500.00), Travel - Assistant ED/Media ($ 5,000.00, Travel-Assistant ED/Compliance 7,500.00 0.00, and Travel - IT Director $1,500.00 0.00 (NJCAA Budget, 2). However, cutting travel costs helps save thousands of dollars annually. Lastly, cutting or adjusting the budgets of the coaches is not something that is recommended as a main option in involving revenues. Each of the cost saving strategies is essential in the way the NJCAA handles the increase/decrease the expenses.

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